NEW INDIA ASSURANCE CO LTD Vs. BHORUKA ROADLINES LTD
DEBTS RECOVERY APPELLATE TRIBUNAL
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Shrikant G.Kulkarni, -
(1.) CHALLENGE emanated from the application filed by the defendant which culminated into framing of a preliminary issue regarding jurisdiction is two fold. Whether the Tribunal has territorial jurisdiction to entertain and decide the present matter is one and whether the claim made in the application is 'debt' is the other.
(2.) It is necessary to know the factual matrix of the present matter. The applicant who is an Insurance Company and admittedly a Financial Institution as defined in the Recovery of the debts Due to Banks and Financial Institutions Act, 1993 filed a claim for recovery of Rs. 10,00,000/- before the learned Civil Judge, Sr. Division, Pune.
According to the applicant, defendant No. 1 is a transporter engaged in the business of transporting for hire, properties from place to place by road, for all persons indiscriminately. The applicant No. 2 is a Company dealing in manufacturing of bearings and was insured on 3rd September, 1994 and 5th September, 1994, the defendant's Baroda Office had collected from the Insured's Works listed in para 5 of the application for despatching the same at various destinations. The said consignment was damaged in transit. The insurance claim was settled with the insured after undergoing formalities. According to the applicants, damage was because of the negligence of the defendants and since applicant No. 1 has paid the amount to the insured, it is entitled for subrogation from the defendants.
(3.) THE matter came to be transferred from the Civil Court to the Debts Recovery Tribunal after the establishment of Debts Recovery Tribunal, Mumbai. Subsequently, the matter landed in this Tribunal after its establishment.;
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